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At the time the indebtedness was incurred the debt

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At the time the indebtedness wasincurred, the debt instrument was dulynotarized and if the loan was contractedwithin three (3) years before the death ofthe decedent, the administrator orexecutor shall submit a statementshowing the disposition of the proceeds ofthe loan.b. All medical expenses incurred within one(1) year before the death of the decedentwhich are duly substantiated with receipts,provided that the total amount thereof,whether paid or unpaid, does not exceedFive Hundred Pesos (P500,000.00).---ooo0ooo---XXIIState the conditionsfor allowing thefollowingasdeductions from thegross estate of acitizen or residentalienforthepurposeofimposing estate tax:a. Claims againstthe estate (2%)
2016 TAXATION BAR QUESTION withsuggested answer QUESTION ON LOCALTAX1.The City of Maharlika passed an ordinanceimposing a tax on any sale or transfer ofreal property located within the city at arate of fifty percent (50%) of one percent(1%) of the total consideration of thetransaction. Jose sold a parcel of land inthe city, which he inherited from hisdeceased parents, and refused to pay theaforesaid tax. He instead filed a caseasking that the ordinance be declared nulland void since the tax it imposed can onlybe collected by the national government,as in fact he was paid the Bureau ofInternal Revenue(BIR)therequiredCapital Gain Tax. If you were the city legalofficer of Maharlika what defenses wouldyou raise to sustain the validity of theordinance?ANSWER:The Ordinance passed by the City Councilof Maharlika imposing a Transfer Tax onthe sale, or any other mode of transferringownership at the rate of 50% of 1% of thetotal consideration involved in theacquisition of the property cannot bedeclared null and void as Petitioned byJose with his contention that he alreadypaid the Capital Gain Tax. Said CityOrdinance is a Taxing Power granted tothe Provincial, Municipality or Cities,pursuant to Section 135 of the LocalGovernment Code of 1991 (LGC).Transfer Tax paid in the Bureau of InternalRevenue (BIR) can be either donor’s orestate taxes which is far different with theTransfer tax imposed by the LocalGovernment, hence, there is no reason tobe confuse. Also, the transfer tax paid tothe provincial or city assessor’s office, itsevidence of payment or the official receiptis required by the Register of Deeds of theprovince concerned before registering anydeed. This is also required by theprovincial assessor before cancelling anold tax declaration and issuing a new onein its place. The payment of the transfertax is the responsibility of the seller,donor, transferor, executor or andadministrator. As to the rate of taximposed it is also compliant to Section151 of the LGC.Therefore, Jose has no reason not to paynor to question the transfer tax imposedon him and seek declaration of which tobe null and void.

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Term
Fall
Professor
NoProfessor
Tags
The Bible, withholding tax, McCulloch v Maryland,

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